LINCOLN ELECTRIC HOLDINGS INC acquired Jinzhou Jin Tai Welding and Metal Co., Ltd. (remaining 52%) for Exchange of Lincoln's 35% interest in Kuang Tai Metal Industrial Co. plus cash of approximately $39 million and assumption of net debt of approximately $10 million, a transaction completed in July 2009, structured as combination (share exchange plus cash).
Jinzhou Jin Tai Welding and Metal Co., Ltd. (remaining 52%) operates in International / Consumables (China), is based in Jinzhou, China, had revenue of about annualized first-half 2009 sales approximately $130 million. Jinzhou Jin Tai Welding and Metal Co., Ltd. ('Jin Tai') is a welding wire business in Jinzhou, China. Lincoln Asia Pacific had owned 48% and acquired 100% control by acquiring the remaining 52% (previously held by Taiwan-based Kuang Tai Metal Industrial Co. and other partners). Jin Tai's annualized first-half 2009 sales were approximately $130 million.
Acquiring Jin Tai expands Lincoln's customer base, brings experienced industry management into its Asian organization, adds significant cost-competitive MIG wire capacity, and lets Lincoln focus resources on growing in China, the largest welding market in the world by volume.
Full control of cost-competitive MIG-wire capacity in China, the world's largest welding market by volume. The Lincoln Electric Company (Asia Pacific)
We are pleased to announce the acquisition of Jin Tai, which starts a new phase in the development of our business in China. Jin Tai will greatly expand our customer base, bring experienced industry management talent into our Asian organization and add significant cost-competitive MIG wire manufacturing capacity.John M. Stropki, Chairman and CEO, Lincoln Electric
Advisory firms were not disclosed for this transaction.